Busher, Clerk v. Fulton, Supt.

Plaintiff in error rests his case upon two principal grounds. First, that since the Trust Company accepted the funds for deposit with express knowledge of their source and with knowledge of the purpose for which they were to be used, a special deposit, constituting a trust, was created, which is entitled to preferential payment. Second, that the deposit of the funds was unauthorized, and consequently the well recognized principle applies that where a custodian of public or other trust funds deposits the same wrongfully or unlawfully in a. financial institution which knows the nature thereof,…